Among the tax changes proposed by President-Elect Donald Trump is a revamping of the corporate income tax rate. The rate is currently 21%, which was intended to be permanent under the Tax Cuts and Jobs Act. However, Trump is proposing to drop it to 20% or 15% to stimulate economic growth. To encourage domestic production, he has proposed that the 15% rate, if enacted, would apply to corporations that manufacture products in the United States. Also, businesses that aren’t C corporations could see a change in the qualified business income (QBI) deduction, which is scheduled to expire at the end of 2025. There is support for the QBI deduction to be extended or made permanent. Stay tuned.
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